Dave Russel: Why Fiber?

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Why Fiber?

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Topics

Value of Fiber to the CommunityFiber Technology OverviewTrends in Fiber DeploymentsFiber Economics


Why Fiber?Bandwidth growth is exponential

Fiber is the path to long-term sustainabilityOffers virtually unlimited bandwidthAllows network to be built “once”

VDSL2 FiberADSL/2/2+1.5-3 Mbps8-24 Mbps

50 Mbps

100 Mbps

500 Mbps

Mul

ti-P

air

Bon

ding

2-P

air

Bon

ding

Competitive Battleground (today)

20 Mbps service today will require 150 Mbps in 5 years, 1 Gbps in 10 years


Peak Bandwidth Growth over Time?

Nielson’s LawInternet peak consumption doubles every 2 years


Growth in Technology InnovationThe growth rate of Internet speeds has lagged behind Moore's

Law and rapid upgrades in storage capacity

Prior Momentum

Google Fiber Launch

*


Fiber as a Community Asset?

Gives your community a competitive advantageBusinesses need high speed fiber optics to be competitiveYoung people won’t settle where they can’t get high speed broadbandCritical infrastructure for economic development

Why is fiber the technology of choice?The only technology that has the bandwidth and flexibility to keep up with projected consumer demandFiber has a high initial cost, but a low operating cost eliminating truck rolls and ongoing maintenanceProvides a communication infrastructure for grid modernizationFiber future proofs the network; bandwidths can scale with consumer demand

Fiber cable infrastructure has unlimited bandwidth potential


Fiber Value Proposition

EnterpriseWorld-class infrastructure to collaborate, innovate and competeServing business of any size

CommunityEconomic development and vitalityWorld-class healthcare, enriched education and public safetyImproved public services and government efficiencies

ConsumersFreedom: no constraints, no boundaries, no limitsAccess to all the things you care about, anytime, anywhere.Highest quality communications: video, voice and data

Value to community stakeholders


Broadband is the New Necessity

Broadband and Economic Development

Question 1: Would you rather have 100 five employee companies or a single 500 person company in your community?Question 2:Would the people running those five person companies be able to grow without adequate broadband?

High speed broadband is now considered a fundamental element of a community’s ability to compete in the global economy


Communities and Fiber Access

Well served communitiesMinnesota has many communities well served with fiber by incumbentsTalk to incumbents

Public-private partnershipsTalk to nearby telecom operators that are looking to expand Private financing now becoming more available

Community ownedFew options for government help except in unserved or underserved rural areasMost have been done by municipal electrics


Fiber Technology Overview


Fiber Access StandardsDeployments for residential and small business

ITU Standards Deployment Status2.5G GPON Millions deployed worldwide

10G PON: XG-PON and XGS-PON Just starting

Multiple 10G PON: NG-PON2 Likely to start in 2017

IEEE Standard Deployment StatusPt-to-Pt GE Millions deployed-Europe and U.S.

10G Pt-to-Pt Just starting

1G EPON Millions deployed in East Asia

10G EPON Started in 2014


GPON and Active Ethernet

FTTP Technologies

PON 16, 32 and 64-way splitBandwidth is allocated dynamically to ensure optimal user experienceFiber efficientDistances to 32km with

32 way split

Point-to-Point GE Dedicated bandwidth per homeFiber intensiveDistances to 50km

Both technologies can offer a Gigabit experience

PON Architecture

Ethernet2.4 Gbps

1.2 Gbps

Residential

Business

Point-to-Point GE / AE Architecture

Ethernet

1 Gbps

Residential

Business

OLT

OLT


Gigabit Advantage Infrastructure designed for future decades

050

010

0015

0020

0025

0030

0035

0040

0045

0050

0055

0060

0065

000

200000

400000

600000

800000

1000000

1200000

DOCSIS 3(8 channel bonding)

Distance (ft)

Copper Technologies

Gigabit Fiber


GPON StandardLight is shared, bandwidth is dynamic

GPON Bandwidth:Downstream: 2.5 GbpsUpstream: 1.2 Gbps

Bandwidth per ONTAny ONT can have 0 to 2.5 Gbps in D/SAny ONT can have 0 to 1.2 Gbps in U/SBandwidth oversubscription

Detailed specification of Dynamic Bandwidth Allocation (DBA)

GuidelinesGPON allows enormous flexibilityUp to 128-way split. Customers are only using 16, 32 and 64Optical budget of 28dB (20km distance, 12 miles) to 31dB with FEC enables distances out to 40km (24 miles)


GPON Optical Network Architectures

1:32

CO

OLT Interface 32

• Home RunNAP

1

8NAP

NAP

NAP

Dist.

8

8

1:8

CO

OLT Interface

• Distributed Split1x8-to-1x4 or 1x4-to-1x8

1:41

32

1:4

1:4

1:4

1

8

1

1:32

CO

OLT Interface

• Centralized Split w/ hand hole for drops (aka Network Access Point or NAP)

NAP1

8NAP

NAP

NAP8

8

1


Comparing GPON and Active Ethernet

GPON is more flexible, lower cost to deploy

2.5 Gbps of shared bandwidthOptical network can be point-to-point or split in the fieldOutside plant architecture can be active or passiveStandard supports legacy services: RF video and TDMCan be deployed in areas with limited fiber cable or conduitConsumes much less CO space and 1/3 as much power at the COGenerally 20-30% cheaper to deploy

AE has higher, dedicated bandwidth

Delivers up to 1 Gbps to every home and business servedFiber network is dedicated point-to-pointSymmetrical bandwidth better suited for SLA based services (100 Mbps+) to medium and large businessesOptical reach beyond 40 kmFamiliar to IT staff at enterprise customers


Outside Plant Design is KeyActive Ethernet must have dedicated fibers in the feeder plant, so all fibers are home run to the OLTWhen feeder fibers or conduit are plentiful, AE or GPON can both work

In higher density areas the sheer number of fibers favors GPONExample: Imagine putting 2300 fibers on a pole versus 72 fibers

When feeder fibers or conduit is limited, GPON is favoredPassive splitting in the outside plant is cheaper than placing cabinets with active electronics

Video

PSTN

ISP

VideoHeadend

Voice

Data

Central Office

Homerun

Aggregate


Trends in Fiber Deployments


FTTH Map of the USA

Source: http://www.broadbandmap.gov/

http://www.broadbandmap.gov/


The Internet of Things is GrowingNew generations of “connected” devices will change home networking and bandwidth consumption

By 2020, some are projecting average U.S. internet connected home could have as many as 50 internet connected devices

Source: Gigaom, Parks Associates, The Wall Street Journal, stltoday.com

95% of U.S. broadband homes are projected to have home networks by 2016


Device Enabled SubscribersThe revolution is here. Are you ready?

The device-driven subscriberExplosion of devices throughout the homeWireless becoming ubiquitous and preferred in-home networkDevices, applications, video increase complexity for subscriberNew services and applications contend for bandwidth and priority

EntertainmentHome securityHome automation Game Console

Wireless Printer

Laptop Smartphone

Wireless TV

Tablet

Security Camera

Thermostat

CameraFemtocell

StorageCard

OTT Stick


Google Fiber Experience ProviderA “clean-sheet” approach to communications


The Gigabit Phenomenon


Creating Gigabit communities

Gigabit Residential Announcements

Cedar Falls, Iowa

Bristol, VA

Ten Cities

Red Wing, Minnesota Rural Vermont

100 Cities

Multiple Cities

Rural Missouri

Burlington, Vermont

Multiple CitiesChattanooga, Tennessee

Lafayette, Louisiana Longmont, Colorado

Leverett, MA


Where Does the Network Begin ?Here

Here

Here

NID

Here


Carrier Class Wi-FiComplete the gigabit experience with Carrier Class Wi-Fi

STB

Data

Data STB

GEDVR

Phone

New Wi-Fi delivers extraordinary coverage and speed Optimized for IPTV video and video streaming Dramatically lowers cost of wiring homes and accelerates IPTV service velocity

STB STB


Obama Visits Cedar Falls

Some significant recent eventsRural Broadband Experiments - $100M … fiber participants offered CAF II opportunity Call for Title II treatment for broadband … it will happen, but when?Definition of broadband increased to 10/1 …soon may be 25/3CAF programs embrace utilities, MSOs, Munis … not just for ILECs anymore$40M new dollars added into RUS loans … expanded for MunisE-Rate significantly expanded … $1.5B for fiber infrastructureA new ROR algorithm solidified … Price Cap nextA shift from wireless to fiber … Obama get a Calix gig demo!


Fiber Economics


Fundamentals of FTTH Success

Key FTTH success factorsHigher penetration rateHigher ARPULow operating costs Faster service velocity (speed of deployment)


Cost study done by FTTH Council and CSMG for the FCC Cost per home passed is all OSP construction labor and materials, based on all aerial construction (engineering and make ready costs are not included)Cost per home served is around $650 for each subscriber served-includes OLT, ONT and subscriber drop costs

Cost to Pass a Home Based on Housing Density

• 5X difference in FTTH costs per HH passed over the range of HH densities with publicly reported data

• Range of densities represents a wide spectrum of HH densities from rural (5 HHs per sq. mile) to urban (1,375 HHs per sq. mile)

Source: FCC Filings, SNL Kagan, CSMG Analysis


Cost per Home Passed FormulaCost per home passed @ 14 homes per square mile

Formula: y= -467.24 Ln(x) + $3658.9

Calculation: =-467.24 Ln(14) +$3658.9=-467.24 X 2.64 +$3658.9= $2,425 per home passed


Cost Case Study: Town of 3600 Homes*Average density of 851 per square mile

30% Take Rate 50% Take Rate 70% Take RateCost per Home Passed

$550 $550 $550

Incremental Cost per Home Served $650 $650 $650

Meters served 1,080 1,800 2,520

Total Cost $2.7 million $3.2 million $3.6 million

Actual Cost per Home Served

$2,500 $1,800 $1,400

*Assumes all aerial construction. Does not take in to account make ready costs, IPTV headend or engineering costs


Fiber: The Optimal New Build Technology Rural FTTH deployments, with up to 1 Gigabit symmetrical, are being deployed in areas as low as under 10 homes per square mile-without any government subsidyWith government support even lower density areas are being served by fiberLTE and fixed wireless do not have the bandwidth or data usage cost structure to be competitive with an all fiber network or to provide consumers and businesses with the bandwidth they need

Question: What does 212 Gigabytes per month of use cost over a wireless network? This is the amount of bandwidth consumed by the average consumer using streaming video, not on a cable or satellite system

Fiber deployed in small rural towns can be as cost effective as urban and suburban areas

Dave Russel: Why Fiber?

Technology

Transcript of Dave Russel: Why Fiber?